A monthly measure of confidence among small business owners has rebounded on more upbeat expectations for the economy as well as sales and hiring.

The National Federation of Independent Business reported that its Small Business Optimism Index rose 1.6 points to 105.2.

“Strong consumer demand is boosting small business optimism,” said Juanita Duggan, president and chief executive officer of the NFIB. “Small business owners are feeling better about the economy because their customers are feeling better about the economy. It’s a good trend that we hope continues.”

The NFIB bases the index on the results of monthly surveys of members of the small business advocacy group, most of them small business owners.

For July, seven of 10 components of the index advanced, while two retreated and one remained unchanged.

The proportion of small business owners responding to the survey upon which the July index was based who expect the economy to improve rose four points to a net 37 percent.

A net 28 percent of owners reported plans for capital outlays, down two points from June. A net 23 percent of owners said they consider now a good time to expand, up two points.

Duggan said some business owners could be waiting to see what happens with proposed federal tax reforms before making big investments in capital improvements or acquisitions.

A net 22 percent of owners said they expect higher sales, up five points. But at a negative net 10 percent, more owners reported lower earnings than higher earnings. That level was unchanged from a month ago.

A net 19 percent of owners reported plans to increase staffing, up four points. Meanwhile, a net 35 percent of owners reported hard-to-fill job openings, up five points.

“The number of owners trying to fill positions and create new jobs is very high,” said Bill Dunkelberg, chief economist of the NFIB. “That’s good news for workers because they can command higher wages and better benefits. The bad news is that small business employers are finding it very hard to hire and keep their workers.”

A record 19 percent of business owners cited a lack of qualified workers as their most pressing business problem, second only to taxes.

A net 5 percent of owners reported plans to increase inventories, up a point. But at a net negative 2 percent, more owners said current inventories were too high rather than too low.